Franchise royalties. The sales reported, certified against the sales made.

Royalties and marketing fund fees are a percentage of the gross sales each franchisee reports, and the franchisee is the one who calculates them. Audits reach a small share of locations, months after the fact. M03 Royalty Fee Recovery checks every royalty report against the franchisee's own POS sales, bank deposits and delivery-platform settlements, applies the franchise agreement's definition of gross sales, permitted deductions and royalty rates, and ends in a CAAR (Certified Analysis & Audit Report). It runs on the same MGE (Metrics Governance Engine) Trust Loop that powers M01, M02 and M04 — built for the franchisor's royalty and finance team.

• Delivery sales at net, not gross — the franchisee reports the $3,380 the platform paid out, not the $5,200 the customers paid.
• Deductions the agreement doesn't allow — comps, promotions and other carve-outs claimed against the royalty base without a basis in the franchise agreement.
• Cash and voids — cash sales that never reached the bank, and orders voided after close with no manager authorization.
• Rates, tiers and fees — the wrong royalty tier, and marketing fund or technology fees calculated on the wrong base.

Every certified finding is sealed with SHA-256 in an evidence-grade CAAR, for one location and one reporting period. Sentry certifies what is owed under the franchise agreement; your royalty team takes it to the franchisee and collects. M03 is an upgrade to Sentry for franchisors, priced on request. Call for pricing →